At LOOP, we're on a mission to transform the car insurance industry by making insurance more Equitable, fair, and accessible for all. With a Member-centric approach and a strong focus on innovation, we're dedicated to serving a cohort of customers who are often unfairly treated as high risk by traditional insurance companies. LOOP's AI-powered insurance engine and telematics technology play a central role in this mission. Today, we're excited to share notes from a conversation with our Product team, as they discuss LOOP's product vision, challenges, and more.
Mission and Market Approach
Introducing Amrita Jha and Ben Nickerson, Product Managers at LOOP. They're passionate about LOOP's mission and are working diligently to create products that better serve our customers and provide them with an unparalleled experience.
The Product team’s mission is rooted in the desire to challenge the status quo of the car insurance industry and deliver fair and equitable insurance to our customers. "Our product's mission is to identify a certain cohort of people who are low risk but unfairly treated as high risk by the car insurance industry", says Ben. This cohort often includes people with low credit scores, who have historically been discriminated against regarding insurance premiums.
Amrita explains that LOOP's approach is unique. "We want to serve the cohort who is charged unfairly for their insurance premium. We listen to our customers, and we try to deliver". LOOP's goal is to make sure that insurance premiums are determined by driving behavior rather than factors like credit scores.
Telematics: Measuring What Matters
At the heart of LOOP's insurance engine is telematics, a technology that measures driving behavior and helps us make informed decisions about risk. Amrita explains, "Telematics is a measure of driving behavior. We use it to measure risky behaviors like phone usage and speeding events".
Telematics technology isn't entirely new, but LOOP is pioneering its use in the car insurance market today. While other companies have mobile apps and are trying to leverage telematics as an additional feature, LOOP places telematics at the center of its product offering. Where most car insurance companies price policies based on irrelevant rating factors, LOOP uses telematics to review driving habits over time and reward its Members for being good drivers.
Telematics data is collected through LOOP's user-friendly mobile app, which Members are encouraged to download and log into when purchasing a policy. However, Ben emphasizes that LOOP uses telematics responsibly and intelligently. "Our telematics usage is important in proving our thesis that this cohort of Members is not high risk. It's not used to hike rates; it's there to serve our mission and show that these customers are very reasonable [drivers]”.
Ben further explains that LOOP's use of telematics differs from traditional usage-based insurance. "We are using it as a way to help identify extremely high-risk patterns with specific drivers", says Ben. He shares an example that high-risk behavior refers to regularly driving over 100–120 miles per hour, not just going slightly above the speed limit.
LOOP's approach to telematics is about proving to the industry that credit scores aren't an accurate measure of risk. "In order to prove that we don't need credit scores to the rest of the industry, we have to actually track driving behaviors", Ben notes. LOOP's goal is to demonstrate that low credit drivers aren't inherently high risk just because they have a negative financial history.
Our Member-Centric Approach
Customer feedback and satisfaction are paramount to LOOP. Amrita shares how LOOP maintains its focus on Members. "We read every review, listen to customer care calls, and center our members by understanding their pain points. We try to address them and make the impact accordingly”.
LOOP's mobile app is designed to be a one-stop shop for customers to interact with their policies. It allows them to make payments, access policy documents, and view their driving scores. Ben adds, "We want anything that you have a question about for your policy to be at your fingertips. That's the idea.”
Overcoming Challenges in Scaling and Industry Regulation
As LOOP continues to grow, the team has faced challenges related to scaling, regulation, and product education. One challenge has been acquainting Members with how LOOP functions and addressing any confusion around telematics. "We are constantly working to communicate with customers on how LOOP functions, and how telematics helps measure driving behaviors", says Amrita.
Scaling effectively has also been a priority. Ben highlights the importance of ensuring that as LOOP operates with higher volume, no Member’s experience is overlooked. "Product has a heavy responsibility to make sure that our scale does not impact our systems in a way that would hurt our customer experience".
LOOP's next steps as an insurance company involve identifying how to better serve Members. However, the team acknowledges that the heavily regulated nature of the insurance industry can create hurdles. "When we want to improve the customer's experience, we run into regulatory challenges that just take time to clear up”, explains Ben.
Envisioning the Future of Product at LOOP
LOOP's vision for the future goes beyond just being a car insurance company. Ben shares that LOOP sees itself as a mission-driven company that can make a positive impact in multiple areas. "LOOP is a mission; it is not car insurance. We are people who can find opportunities to be disruptive in markets that are unfair”.
Amrita agrees and adds that they want to develop more sophisticated products that align with LOOP's mission. "We want to make it more accessible and adjustable for our [Members]. We want to measure only what matters”.
LOOP envisions a future where it expands to other states, reaching more customers waiting for fair insurance. The team is also exploring opportunities to better serve communities and enhance the overall Member experience.
LOOP's ultimate aspiration is to be seen as a car insurance company for good—a company that treats customers like human beings and puts people first. Ben shares his hope that Members feel that LOOP is an enjoyable and easy insurance experience. "I want customers to have the sentiment that 'I love my car insurance company.' I want them to just love the experience with LOOP”.
LOOP's story is one of determination, innovation, and social impact—a story that is still being written with each new step toward achieving its mission. Join us in supporting LOOP's journey as we continue to work together toward a more Equitable and inclusive world.